Departments Directions Social Fund Guide

Part 3 - Crisis Loans

Direction 17 - Trade Disputes, JSA disallowances/sanctions and failure to take part in work-focused interviews

The Department directs that

Trade Disputes

(a)Where the applicant or his partner -

(i)is disentitled from receiving a jobseeker's allowance pursuant to Article 16 of the Jobseekers (Northern Ireland) Order 1995 (referred to in this direction as "the Order") or would be so disentitled if otherwise entitled to that allowance, or

(ii)is in receipt of a reduced rate of jobseeker's allowance pursuant to Article 17 of the Order (trade disputes - effect on other claimants),

the expenses for which a crisis loan may be awarded are restricted to those specified in (g) until the date when the applicant or his partner is no longer disentitled from receiving jobseeker's allowance under Article 16 of the Order or until the date when the applicant or his partner is no longer in receipt of a reduced rate jobseeker's allowance under Article 17 of the Order.

Disallowances

(b)Subject to paragraph (f), where an applicant’ does not satisfy the conditions in Article 3 (2)(a) to (c) of the Order as either;-

(i)a claimant for a jobseeker’s allowance under Article 3(2) of the Order or

(ii)a member of a joint-claim couple who have claimed a jobseeker’s allowance under Article 3(2B) of the Order,

and as a result the claim or joint- claim is disallowed, the expenses for which a crisis loan may be awarded to the applicant are restricted to those specified in (g) for 14 days starting on the first day of the benefit week immediately following the disallowance decision, or the benefit week commencement date if the disallowance decision is made on that day.

Sanctions

(c)Subject to paragraph (f) and except in a case to which paragraph (d) applies, where an applicant is either a claimant for a jobseeker’s allowance under Article 3(2) of the Order or a member of a joint-claim couple who have claimed a jobseeker’s allowance under Article 3 (2B) of the Order and:

(i)one or more of the circumstances specified in Article 21(5) and (6) or 22A(2) of the Order applied to the applicant; or

(ii)section 53(1)(a) and (b) of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000, applied to him;

(iii)section 6 (1) of the Social Security Fraud( Northern Ireland ) Act 2001 applied to him,

the expenses for which a crisis loan may be awarded to the applicant are restricted to those specified in (g) for 14 days following the end of the period for which a jobseeker’s allowance is (or was) not payable.

New Deal Sanctions

(d)Subject to paragraph (f), where it is determined that a jobseeker's allowance is not payable to the applicant on the basis that either or both of Article 21(5)(b) or (c) of the Order apply in relation to an employment programme specified in regulation 75(1)(a) (ii) of the Jobseeker's Allowance Regulations (Northern Ireland) 1996 or in relation to a training scheme specified in regulation 75(1)(b)(ii) of those Regulations, the expenses for which a crisis loan may be awarded are restricted to those specified in (g) throughout the period when he is not a person in hardship pursuant to regulation 140A(1) of those Regulations.

Failure to take part in work-focused interviews

(e)Subject to paragraph (f), the expenses for which a crisis loan may be awarded to an applicant in respect of whom it has been decided that he has failed to take part in a work-focused interview ("an interview") imposed by regulations made under section 2A of the Social Security Administration ( Northern Ireland ) Act 1992, are restricted to those specified in (g) for the purpose of any application made in the period beginning on the date of that decision and ending on:

(i)the date on which it is decided that the applicant has taken part in an interview; or

(ii)the last day on which he is required to take part in an interview, whichever shall first occur.

(f)Paragraphs (b), (c) and (d) and (e) shall not apply where the applicant is:

(i)in receipt of income - based Jobseeker's allowance by virtue of his being a "person in hardship"under regulation 140(1) of the Jobseeker's Allowance Regulations ( Northern Ireland )1996; or

(ii)a member of a joint claim couple who are in receipt of a Jobseeker's allowance by virtue of their being a "couple in hardship" under regulation 146A (1) of those Regulations; or

(iii)a lone parent to whom the provisions of the Social Security (Work - focused Interviews for Lone Parents) Regulations ( Northern Ireland) 2001 apply.

(g)The specified expenses are -

(i)expenses which are the consequence of a disaster, and

(ii)expenses, outside (i), in respect of items required for the purpose only of cooking or space heating (including fireguards).

Direction 17

4350.Direction 17 restricts the CL awards which may be made in specified circumstances described in paragraph 4353 below to expenses that arise as a consequence of disaster.

4351.Essentially it limits access to help with living expenses or for most goods or services where the applicant’s benefit has been disallowed or sanctioned.

4352.The aim of the direction is to ensure that the applicants cannot undermine the financial impact of such a disallowance or sanction by receiving a CL instead.

4353.The circumstances are that the DM finds that the application is made wholly or partly because the applicant is (or for the purposes of sub- paragraphs (b), (c) and (d) only, has been) the subject of one or more of the following, a:

trade dispute
disallowance
sanction or
work – focused interview sanction.

Decision Making process

4354.Decision Making process

4355.In determining whether Direction 17 applies, a DM must look at all the circumstances that led to the CL application being made. Identifying that the applicant is subject to a disallowance or sanction is only the first step.

4356.Consideration must be given to the reasons why the CL application has been made. It is for the DM to discover the reasons and make a finding as to whether the application is wholly or partly due to the disallowance or sanction.

4357.It is possible that even though an applicant is subject to a disallowance or sanction, their CL application was not as a result as one of these. An applicant may have had sufficient resources in spite of a reduction in their benefit, however intervening events have resulted in a loss of those resources and the necessity for a CL has arisen.

4358.There is no definitive list of events that result in the applicant not having enough to cover living expenses. Such events might include:

loss of money;
theft of money;
spending resources on an unexpected emergency situation.

4359.If the DM finds that the application was as a result of one of the specified circumstances in paragraph 4353. (Direction 17(2)), whether wholly or partly, CLs should be restricted according to paragraph 4350 (Direction (17(1)).

Example

A job seeker has refused to follow a jobseeker’s direction and has his benefit sanctioned for 2 weeks. Despite the sanction, the jobseeker has sufficient money to meet his living expenses. Five days before he will receive his first payment of JSA since being sanctioned, the jobseeker loses his wallet containing his last £50. His application for a CL for living expenses is awarded as the DM finds the application was due to his wallet being lost and not because of the sanction.

Trade disputes (Direction 17(3)(a))

4360.A claimant will not be entitled to Jobseekers Allowance (JSA) for any week which includes at least one day where the claimant is involved in a trade dispute (as per Jobseekers Act, section 14).

4361.When such a claimant makes an application for a CL, and it is determined that the application is due wholly or partly to the disentitlement, their access to CLs will be restricted under Direction 17.

4362.If an application is made as the consequence of a disaster, consider the application in the same way as other CL applications.

4363.If the application arises other than as a consequence of a disaster a CL cannot be considered.

4364.There is no provision for hardship payments in relation to customers who are involved in a trade dispute, and as such irrespective of whether the customer may be a member of a perceived vulnerable group or not, their access to CLs will be restricted under Direction 17 in the circumstances described above.

Jobseeker's Allowance disallowances (Direction 17(3)(b))

4365.Disallowances occur where the jobseeker has not satisfied a basic condition of entitlement to Jobseekers Allowance (JSA), for example availability of employment.

4366.Under a disallowance, JSA is not payable for the length of the disallowance, Where that Jobseeker fails within a prescribed vulnerable group (see paragraph 4400), they can apply for JSA(IB) hardship payments immediately, If an applicant for a crisis loan, who is subject to a JSA disallowance, for JSA(IB) hardship payments, they should be advised to do so.

4367.An applicant who is in a prescribed vulnerable group, see Direction 17(f), may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group see Direction 17(4)(a).

4368.JSA will not be payable, even JSA(IB) hardship payments, to applicants who are not in a prescribed vulnerable group (see para 4401 below) until such time as the jobseeker modifies his behaviour and satisfies the JSA basic conditions of entitlement.

4369.For these cases, if JSA is not payable due to a disallowance and the DM finds that the application for a CL is wholly or partly due to that disallowance, a CL cannot be awarded. In these circumstances a CL can only be considered as a consequence of a disaster.

Example 1

A jobseeker has refused to enter into A Jobseeker’s agreement and as a result his JSA has been disallowed. He is a single man with no health problems and he is not eligible to receive JSA (IB) hardship payments. As his JSA has been stopped he has no money, so makes an application for a CL for living expenses. The DM considers that Direction 17(2)(b) applies, i.e., the application is made because the applicant Is the subject of a disallowance. As the jobseeker is not receiving JSA (IB) hardship payments for being a member of a vulnerable group, a CL for living expenses is not allowed under Direction 17(1).

Example 2

A Jobseeker states that she is not available for employment and as a result her JSA is disallowed. She applies for a CL as her handbag containing £100 is stolen and as a result she has no money for food. The DM considers that the CL application is as a result of her handbag being stolen not due to the fact that her JSA is disallowed. Consequently Direction 17(2)(b) does not apply and a CL for living expenses can be considered.

4370.If a jobseeker changes their behaviour after their original disallowance by making a new claim to JSA and satisfies the officer who made the JSA decision on behalf of the Department of their eligibility to JSA, the original disallowance and thus the restriction on availability for CLs, will no longer apply from the date the new claim to JSA is allowed.

Jobseeker's Allowance - employment sanctions (Direction 17(3)(c)(i) & (ii)

4371.Employment sanctions occur if, for example, jobseekers have left their previous work voluntarily through misconduct

4372.The length of employment sanctions are discretionary, to be set by the DM up to a maximum of 26 weeks. During the period of a sanction JSA is not payable, however for those who fall within a prescribed vulnerable group (see paragraph 4400 below) the jobseeker can apply for JSA (IB) hardship payments.

4373.If a sanctioned applicant who comes within a prescribed vulnerable group is not receiving JSA (IB) hardship payments they should be advised to apply immediately. Until such times as they actually receive JSA (IB) hardship payments their access to a CL will be restricted under Direction 17.

4374.For people who do not fall into a prescribed vulnerable group, (normally single, healthy, childless people and healthy, childless couples with no caring responsibilities) JSA, including JSA (IB) hardship payments, will not be payable for the first two weeks of the sanction. Irrespective of whether they receive hardship payments or not, as they are not a member of a vulnerable group they will not be eligible under Direction 17 for a CL for living expenses.

Example 1

A jobseeker has resigned from his job and as a result his JSA has been sanctioned for 12 weeks from 19/4/10 to 11/7/10. He falls within a vulnerable group as his wife is pregnant and he has applied for and is receiving JSA (IB) hardship payments. In this case Direction 17 (3)(c)(i) does not apply as he falls within the exception at 17(4)(a) so a CL for living expenses can be considered under the normal rules.

Example 2

A jobseeker has been dismissed from his job due to misconduct and as a result his JSA has been sanctioned for 7 weeks from 3/5/10 to 20/6/10. He is a single healthy man and does not fall within a prescribed vulnerable group for the purposes of JSA (IB) hardship payments. On 17/5/10 he applies for a CL for living expenses as he has no money to buy food. The DM determines that his application for a CL due to the fact that his JSA is sanctioned so Direction 17(3)(c )(i) applies and a CL for living expenses is refused under Direction 17(1). In this case the applicant should be directed to apply for JSA (IB) hardship payments as jobseekers who are not in a vulnerable group are entitled to make such an application from the 15th day that JSA is not payable because of the sanction.

Irrespective of whether the jobseeker ultimately receives JSA (IB) hardship payments, he would still be ineligible for a CL for living expenses as the reason he may be receiving hardship payments is not because he is a member of a vulnerable group.

Jobseeker's Allowance - Jobseekers direction (Direction 17(3)(c)(i) & (ii)

4375.A claimant’s JSA can be sanctioned where they have refused or failed to carry out a jobseeker’s direction (JSD sanction) and cannot show good cause for the refusal or failure. A JSD sanction is a fixed period sanction lasting for one week.

4376.During the period of a sanction JSA is not payable; however those who fall within a prescribed vulnerable group (see paragraph 4400) can apply for JSA (IB) hardship payments, they should be advised to apply immediately. Until such time as they actually receive JSA (IB) hardship payments their access to a CL will be restricted under Direction 17.

4377.Claimants who are not part of a vulnerable group are eligible to apply for JSA (IB) hardship payments from the 15th day that benefit id not payable due to a JSD sanction, however this is subject to a number of exceptions. Irrespective of whether a claimant who is not part of a vulnerable group receives hardship payments or not, any applications they make for a CL will be subject to Direction 17.

Jobseeker's Allowance – Training and New Deal sanctions

4378.These types of sanction occur if, for example, jobseekers have failed to attend or neglected to avail themselves of a place on a New Deal option, the Flexible New Deal, Steps to Work or a mandatory training scheme.

4379.New Deal (including the Flexible New Deal) sanctions are for a fixed period of 2 ,4 or 26 weeks and can be applied consecutively. Those in a prescribed vulnerable group (see paragraph 4400) can apply for JSA (IB) hardship payments immediately. However, in the case of claimants who are not in a vulnerable group, JSA is not payable for the whole of the period of the sanction. In the case of the Flexible New Deal, a 26 week sanction can be brought to an end after a minimum of 4 weeks where the claimant agrees in writing to comply with his or her action plan.

4380.An applicant who is in a prescribed vulnerable group and already in receipt of JSA (IB) hardship payments may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group.

4381.For those who are not in a vulnerable group whose JSA is not payable because of a sanction, an application for a CL for living expenses cannot be considered if the application is made as a result of that sanction. In these cases a CL can only be considered to alleviate the consequence of a disaster.

Example 1

A jobseeker has refused to attend her place on a FND programme and as a result her JSA is sanctioned for 2 weeks. She is a single person with no children or health problems so is not in a vulnerable group and not entitled to JSA (IB) hardship payments. As she has no money she makes an application for a CL for living expenses but the DM determines that her CL application is as a result of the sanction so Direction 17(3)(c)(i) applies and a CL for living expenses is not allowed under Direction 17(1).

Example 2

A jobseeker is in receipt of JSA(C). He has lost his place on an employment programme through misconduct and as a result his JSA is sanctioned for 2 weeks. The jobseeker is married with 2 children, and therefore a member of a vulnerable group and asks for hardship payments. The DM is satisfied that unless JSA is paid the children will suffer hardship. The jobseekers entitlement to JSA (IB) is established and as he is part of a vulnerable group JSA (IB) hardship payments commence. The jobseeker applies for a CL and is entitled to have it considered under the normal rules without the Direction 17 restriction as he is receiving JSA (IB) hardship payments as part of a vulnerable group.

Jobseeker's Allowance - Two Strikes sanctions(Direction 17(3) (c) (iii) & (iv)

4382.The Loss of Benefit provisions contained in the Social Security Fraud Act (Northern Ireland) 2001 (known as a ‘Two Strikes’ sanction) are designed to be a deterrent against continued abuse of the benefit system. They introduce a benefit sanction for those convicted of benefit offences whereby payment of certain benefits is either stopped entirely or reduced if a person would otherwise be entitled to those benefits, during a fixed 13 week Disqualification Period.

4383.A ‘Two Strikes’ sanction is triggered when a person is convicted in two separate proceedings of offences committed on or after 1st April 2002 relating to disqualifying benefits. The second or subsequent offence must have been committed within 5 years of the previous conviction. A ‘Two Strikes’ sanction will be applied to all sanctionable benefits in payment during the disqualification period, regardless of whether the offence was committed in relation to that benefit.

4384.While the Two Strike sanction can be applied to a range of benefits, restricted access to CLs under Direction 17(2) (c) only applies if the benefit sanctioned is income support, employment and support allowance, job seekers allowance or state pension credit. The exceptions to this, as with other Direction 17 (3) (c) sanctions, are vulnerable groups in receipt of hardship payments (see Direction 17(4)).

4385.For jobseekers allowance, those in a prescribed vulnerable group (see paragraph 4400) and already in receipt of JSA (IB) hardship payments may apply for a CL without reference to Direction 17. Claimants who are not part of a vulnerable group can apply for JSA (IB) hardship payments on the 15th day that benefit is not payable as a result of the Two Strikes sanction, but will still be subject to Direction 17.

4386.For income support, employment and support allowance and state pension credit, the prescribed vulnerable groups are customers who are pregnant or seriously ill or have a family member who is pregnant or seriously ill.

4387.If they are receiving their sanctioned benefit subject to a 20% reduction only (as per regulation 3 (1) (a) of the Social Security (Loss of Benefit) Regulations 2001), they can apply under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for these groups (see Direction 17(4) (c) and (d).

4388.All other IS, ESA (IR) and SPC customers who have been sanctioned under the Two Strikes provisions will receive their benefit but it will be reduced by 40%, however any CL applications will still be subject to Direction 17.

One Strike Sanction (Direction 17 (3) (c) (iii) & (iv)

4389.The Loss of Benefit provisions in the Social Security Fraud Act (Northern Ireland) 2001 have been amended from 1st September 2011 to introduce section 5B; a loss of benefit sanction for all first offences of benefit fraud (a "One Strike" sanction). The new sanction will apply not only to cases which are prosecuted and result in a criminal conviction for benefit fraud but also to those cases which result in an administrative penalty or a caution.

4390.The aim is to increse the deterrent effect of the existing sanctions regime by extending the provision on loss of the right to continuing benefit to cover those committing a first benefit fraud offence.

4391.Where a benefit is subject to a One Strike sanction it could be reduced or not payable in its entirety, depending on the benefit and prescribed circumstances. All One Strike sanctions, irrespective of whether benefit is reduced or not payable, are for a fixed four week disqualification period.

4392.A One Strike sanction is triggered if a relevant offence was committed after 1st September 2011. If the individual is convicted of a benefit fraud offence after 1st September 2011 (or accepts an administrative penalty or caution) but the offence was committed prior to that date, then One Strike sanctions will not apply.

4393.As with Two Strike sanctions, One Strike sanctions can be imposed against numerous benefits, however the Direction 17 restriction only applies to income support, employment and support allowance, job seekers allowance and state pension credit subject to those exceptions for vulnerable groups detailed in paragraphs 4394 to 4397 below (see Direction 17(4)).

4394.For jobseekers allowance those in a pescribed vulnerable group and already in receipt of JSA(IB) hardship payments may applyfor a CL without reference to Direction 17. Claimants who are not part of a vulnerable group, can only apply for JSA(IB) hardship payments on the 15th day that benefit is not payable as a result of the One Strike sanction, but will still be subject to Direction 17.

4395.For income support, employment and support allowance and state pension credit, the prescribed vulnerable groups are customers who are pregnant or seriously ill or have a family member who is pregnant or seriously ill.

4396.If they are receiving their sanctioned benefit subject to a 20% reduction only (as per regulation 3 (1) (a) or 3A (1) (a) of the Social Security (Loss of Benefit) Regulations (2001), they can apply under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for those groups (see Direction 17 (4) (c) and (d)).

4397.All other IS, ESA(IR) and SPC customers who have been sanctioned under the One Strike provisions will receive their benefit but it will be reduced by 40%, however any CL applications will still be subject to Direction 17.

Jobseekers Allowance – Fail to show good cause sanctions

Not applicable in Northern Ireland

Work-focused interview or work – focused health – related assessment sanctions – ESA (Direction 17(3) ( c) (iv))

(WFHRAs are currently suspended in NI)

4389.In relation to ESA, customers may be required to attend either a work – focused interview (WFI) or a work – focused health – related assessment (WFHRA). If they fail to take part in a required interview a sanction may be imposed and ESA will be paid at a reduced rate. The reduction is applied to the work related activity component of ESA.

4390.SF applicants, who have received a decision that they have failed to take part in a WFI or WFHRA and as a result their ESA has been sanctioned, will have access to CLs restricted to expenses in consequence of a disaster under Direction 17.

4391.There are no hardship payments to vulnerable groups under this sanction and accordingly the Direction 17 restriction to CLs will apply to all applicants who are subject to this sanction whether or not they may fall into a vulnerable group.

Work – Focused interview sanction – IS, IB and SDA (Direction 17 (3)(d))

4392.Several initiatives are in force which in prescribed circumstances require people of working age to take part in a WFI when making a new and repeat claim. A WFI sanction may be imposed if a customer fails to take part in a required WFI. This may result in the payment of income support, incapacity benefit or severe disablement allowance being disallowed or reduced due to this failure.

4393.SF applicants who have received a decision that they have failed to take part in a WFI will have their access to CLs restricted to expenses in consequence of a disaster under Direction 17.

4394.However this restriction does not apply to those in a prescribed vulnerable group, which is currently limited to lone parents (see Direction 17(4)(e)).

Example

A lone parent has failed to attend her WFI and as a result her IS is sanctioned and paid at a reduced rate. She makes an application for a CL as she finds it difficult to manage on her reduced benefit. The DM determines that although the CL application is as a result of the sanction, it is not appropriate to apply the restricted access to a CL under Direction 17 as the the applicant falls within the exception at 17 (4)(e). The DM considers a CL in the normal way.

Applicants whose partners are subject to a JSA disallowance/sanction or WFI penalty

4395.Where it is the applicant's partner who has a claim to benefit that is subject to the above sanctions/penalties, the applicant has normal access to a crisis loan.

4396.However, where the CL application is for living expenses, the maximum living expenses payable must be calculated in accordance with direction 18 (2) (i.e., no amount is payable for the partner). Note this only applies when, had the sanctioned partner applied for the CL instead, the restrictions in direction 17 (b) to (e) would apply.

Joint Claims for Jobseeker's Allowance

4397.Certain childless couples making new or repeat claims for JSA are required to make their claim jointly. Both members of the couple will have to satisfy JSA entitlement conditions to get JSA and both will be claimants with equal rights and responsibilities in relation to the claim.

4398.The same principles governing CL restrictions for applicants subject to a benefit penalty will apply via directions 17 and 18 to either members of a JSA joint claim couples as to other sanctioned jobseekers. These are that

where a benefit penalty is imposed on a jobseeker their access to CLs is restricted to the specified expenses as laid down in paragraph 86: and
their partner who is not the subject of the benefit penalty will have normal access to CLs; but
any award for living expenses will be limited under Direction 18(2b).

Prescribed Vulnerable/non vulnerable groups

4399.Direction 17(4) provides an exception to the general restriction imposed by Direction 17(1). This exception is essentially for vulnerable groups, however it may depend on whether they are entitled to, and receiving, a hardship payment for being a member of a vulnerable group under the rules of the specific benefit being sanctioned.

4400.For the purposes of JSA disallowances and sanctions, the following customers are considered to be a member of a vulnerable group:

A single pregnant woman;
Members of couples or polygamous marriages where at least one member of the couple or marriage is pregnant
A single person responsible for children or young people;
members of couples or polygamous marriages responsible for children or young people;
a person who qualifies for Disability Premium;
a person with long-term medical conditions;
a person who provides care for disabled people;
certain 16 and 17 yr olds; and
certain persons under the age of 21

4401.Customers who do not fall within a vulnerable group are generally healthy, childless people with no caring responsibilities

4402.There is no provision for hardship payments for vulnerable groups that are the subject of a trade dispute.

4403.When a customer’s IS, ESA or SPC is the subject of a Two Strike sanction, they will only be considered part of a vulnerable group when they or any member of their family is pregnant or seriously ill. In these cases the reduction in benefit is smaller than for other sanctioned customers.

4404.When a vulnerable group customer is subject to a JSA disallowance or sanction, or an IS, ESA and SPC Two Strike sanction, they may be entitled to have their benefit paid at hardship rate immediately. If such a hardship payment is in payment, when an applicant applies for a CL they are not restricted by Direction 17 and their application should be considered in the normal way.

4405.It should be noted that non-vulnerable group customers may be entitled to hardship payments as well, but usually a number of weeks after the sanctioned is imposed. Despite receiving a hardship payment, these customers are not excluded from the Direction 17 restriction on CLs.

4406.The amount of benefit paid when on hardship can vary even between vulnerable customers, so this should not be used as the key factor in deciding if the customer falls within Direction 17 (4).

4407.In relation to WFI sanctions imposed on IS, IB or SDA, vulnerable customers are limited to lone parents as per Direction 17(4)(e).

4408.DMs may find the following table and flowchart useful when determining whether or not the restriction in Direction 17 applies.

Direction 17 – table showing when to consider restricted access to Crisis Loans

WHEN TO CONSIDER DIRECTION 17 RESTRICTIONS

Circumstances	Benefit Group (to which D17 applies)	Hardship/Benefit in payment	Restricted access under D17¹
17(3)(a) Trade Disputes (no changes)	JSA – Non vulnerable group	No benefit payable or hardship considered	Yes
	JSA – Vulnerable group²	No benefit payable or hardship considered	Yes
17 (3)(b) Disallowances	JSA – Non vulnerable group	No benefit payable until availability resolved, no hardship considered	Yes
	JSA – Vulnerable group	Hardship considered immediately	No 17(4)(a) & (b)
17 (3)(c) Sanctions
17(3)(c)(i) & (ii)	JSA – Non vulnerable group	Hardship considered after 2 weeks	Yes
s19 or s20A JS Act Sanctions
(including New Deal and training sanctions)	JSA – Vulnerable group	Hardship considered immediately	No 17(4)(a) & (b )
17(3)(c)(iii)(4)s6B Fraud Act 2001(5)
Benefit fraud offences – One strike (effective from 01/04/2010 in GB only)	JSA – Non vulnerable group	Hardship considered after 2 weeks	Yes
	JSA – Vulnerable group	Hardship considered immediately	No 17(4)(a) & (b)
17(3)(c)(iii()4) s7 Fraud Act 2001(5)Benefit fraud offences –	ESA(C) – Non vulnerable group	No benefit payable, however can apply for ESA(IR) at reduced rate	Yes
	ESA(C) – Vulnerable group	No benefit payable, however can apply for ESA(IR) at reduced rate	Yes(6)
Two strikes (D17 extended to IS/ESA/SPC)	IS/ESA(IR)/SPC – Non vulnerable group	Benefit only subject to 40% reduction, no hardship considered	Yes
	IS/ESA(IR)/SPC – Vulnerable group	Benefit only subject to 20% reduction, no hardship considered	No 17(4)(c) & (d)
17(3)(c)(iv) s8 Fraud Act 2001	JSA joint-claim – Non vulnerable group	Hardship considered after 2 weeks	Yes
Benefit fraud offences –
One & Two strikes (One Strike not applicable in NI)	JSA joint-claim – Vulnerable group	Hardship considered immediately	No 17(4)(a) & (b)
17(3)(c)(v) Reg. 27A JSA Regs	JSA – Non vulnerable group	No benefit for 1 week for 1st offence then no benefit for 2 weeks for later offences	Yes
No good cause sanction (effective from 06/04/2010 in GB only)	JSA – Vulnerable group	Hardship considered immediately	No 17(4)(a) & (b)
17(3)(c)(vi) Reg. 63 ESA Regs
Failure to take part in WFI or WFHRA for ESA	ESA – Non vulnerable group	Work-related activity component only to be reduced, no hardship considered	Yes
(WFHRA currently suspended in NI)	ESA – Vulnerable group	Work-related activity component only to be reduced, no hardship considered	Yes
17(3)(d) Failure to take part in WFIs	IS/IB/SDA – Non vulnerable group	Dependent on specific regulations	Yes
	IS/IB/SDA – Vulnerable group	Dependent on specific regulations	No 17(4)(e)

4409.Note 1: A CL may be awarded but only in respect of expenses as a consequence of a disaster

Note 2: Claimants considered to fall within a vulnerable group vary according to the relevant benefit. Refer to SF Guide for further detailed information.

Note 3: Hardship payments to non-vulnerable groups are not available in some cases. Examples include claimants who are required to participate in a New Deal option, the Flexible New Deal and where the claimant failed to participate in a Back to Work session. Note: all sanctioned claimants considered part of a non-vulnerable group, whether they are receiving hardship payments or not, will have their access to CLs restricted in accordance with D17.

Note 4: 17(3)(c)(iii) does not apply to joint-claim JSA which is provided for in 17(3)(c)(iv).

Note 5: ss6B & 7 Fraud Act sanctions can be imposed on a larger range of benefits than D17 applies to. Please note that D17 is only relevant where the benefit sanctioned under ss6B or 7 is JSA, IS, ESA or SPC. For all other benefits that may be sanctioned under ss6B or 7 (including IB & SDA) access to CLs is NOT restricted under D17.

Note 6: Unless receiving ESA(IR) at reduced rate.

Direction 17 Consideration Flowchart

Direction 17 Consideration Step Action Table

Step	Action
1	Is CL application for expenses as a consequence of disaster? Yes – Normal rules apply No – Go to Step 2
2	Is customer/partner currently, or has recently been, subject to a sanction/disallowance/WFI? Yes – Go to Step 3 No – Normal rules apply
3	Is CL application wholly or partly due to disallowance/sanction? Yes – Go to Step 4 No – Normal rules apply
4	Does sanctioned benefit fall within Direction 17(3) definitions? Yes – Go to Step 5 No – Normal rules apply
5	Is customer in receipt of hardship payment as per Direction 17(4)(a)(e)? Yes – Normal rules apply No – Restriction under Direction 17 applies.